The Egypt Financial Regulatory Authority (FRA) published public guidance explaining its supervisory and licensing remit across non-banking financial activities and warning against a recent increase in individuals and businesses soliciting money from the public for “investment” or “financing” without being licensed or registered with the FRA, often promising “guaranteed” returns. The guidance highlights that Law No. 146 of 1988 prohibits anyone other than joint-stock companies that have offered shares for public subscription and are recorded in the FRA’s register from receiving funds from the public in any currency and under any name for investment or participation, and also prohibits public invitations to raise such money. It adds that promoting public share subscriptions without an FRA-approved prospectus or information memorandum breaches the Capital Market Law (Law No. 95 of 1992, Article 4). The FRA also distinguishes unlawful public fundraising from ordinary trade between identified counterparties, warns that dealing with unlicensed entities can lead to fraud and difficulties in recovering funds, and notes that those who help promote unlicensed offerings may be held legally accountable. The FRA directed the public to verify any soliciting entity via its online register of authorised firms and noted that investment in precious metals such as gold is organised through licensed “gold investment fund certificates”, with three such funds licensed so far. It also flagged risks related to cryptocurrencies and noted that dealing in and promoting them is criminalised under the Central Bank law (Law No. 149 of 2020), and encouraged reporting of suspicious advertisements through its whistleblowing channel.
Egypt Financial Regulatory Authority 2025-05-06
Egypt Financial Regulatory Authority warns against unlicensed public fundraising and share subscription promotions
The Egypt Financial Regulatory Authority (FRA) issued guidance on its supervisory remit, warning against unlicensed entities soliciting public funds with promises of "guaranteed" returns. Only registered joint-stock companies can legally receive public funds for investment. The FRA highlighted legal risks associated with unlicensed offerings, cryptocurrencies, and unauthorized public share promotions. The public is advised to verify entities via the FRA's online register and report suspicious activities through its whistleblowing channel.